South African Market Overview 2 February 2022

Sharing our Daily Market Overview with you, ensuring that you do not miss out on any important market changes!

 

Local Market Update

  • Local stocks rose for the second consecutive session, starting the second month of the year on a strong note after January’s volatility. A series of promising annual reports from a number of South African companies and an improving near-term outlook for the local economy provided strong market momentum. The benchmark All-Share index rose 0.79% to 74,889 points and the blue-chip Top 40 index closed 0.82% higher at 68,375 points.

     

  • The rand trended firmer on Tuesday, holding its gains from the previous session after the dollar weakened as investors consolidated the greenback’s recent gains. At the close of trading, the rand was trading 0.76% firmer at R15.25 to the dollar. The rand rebounded from last week’s losses as bets on a U.S. rate hike increased due to the Federal Reserve’s aggressive stance, while the South African central bank’s forecasts were less aggressive than the market expected.

     

  • Gold traded steady above the psychological $1,800 level this morning as worries over Ukraine supported the safe-haven metal while investors awaited U.S. labour market data considered crucial to the Federal Reserve’s tapering timetable. Meanwhile, oil prices rose today toward last week’s seven-year highs after data showing a drop in U.S. crude inventories underscored solid demand. However, investors remained cautious ahead of the OPEC + meeting due later in the day.

In Local News

 

VODACOM GROUP LIMITED – Limited trading update for the quarter.

Group revenue increased 6.4% (5.7%*) to R26.7 billion, supported by strong growth in service revenue. Group service revenue increased 5.3% (4.4%*), supported by continued demand for connectivity and growth in new services such as financial services. In South Africa, service revenues increased by 4.5% with excellent growth in Vodacom Business. International service revenue increased by 6.7% (3.5%*), supported by growth in data and M-Pesa revenue. Financial services revenue increased 12.5% to R2.0 billion, with good uptake of the South African super app VodaPay. Vodacom Group CEO Shameel Joosub said the group will continue to focus on economic recovery in the markets in which it operates by implementing a targeted plan.

 

ANGLOGOLD ASHANTI LIMITED – trading statement

Shareholders are advised that the Company expects with reasonable certainty that total profit for the period will be between $572 million and $642 million, with total earnings per share (“HEPS”) between US137 cents and US153 cents, a decrease of between 36% and 42% on the comparative period. In the comparative period of 2020, total earnings and HEPS were US$1,000 million and US$238 cents, respectively. Total basic earnings for the period are expected to be between US$584 million and US$650 million, resulting in basic earnings per share (“EPS”) of between 139 cents and 154 cents, a decrease of 32% to 39% compared to the comparative period. Basic earnings and EPS for the comparative period were $953 million and 227 US cents, respectively.